Putin is trying to coerce firms into doing business or else...

[paxmao]

Putin's latest crazy idea is to coerce Western and multinational firms into keeping their business open in his dominions. The message here is "you have to keep your doors open or I will take all your assets and property and also send your executives to jail".

https://foreignpolicy.com/2022/03/11/russia-mcdonalds-business-seizures/

McDonald’s—which made capitalist history when it opened its first Soviet restaurant in Moscow 32 years ago—is leaving Russia. So are BP, Shell, Ferrari, Ikea, Ford, Mercedes-Benz, Unilever, and a host of other Western companies

Medvedev proposed that Moscow should seize the assets of foreign individuals and companies in Russia. And on March 9, Russia’s governing party said a government commission had begun the process of doing so.

This is a very peculiar understanding of business and the rule of law. I wonder that, if this is effectively implemented, will we ever see a western company investing or doing business in Putin's dominions? Will the jobs for the Russian people created by this companies disappear for decades to come?

[Doan9269]

Is this a live threat or what... If business operations are not open then sending their representative to jail is the solution? I strongly believe Putin is upto something in this regards, but if should in case its just an ordinary threat to lives and properties then i think the citizens will suffer a great havoc of poverty and hunger for years before they can begin to recover.

Now that the Russians bitcoin investors are going out of the country to seek for better settlement elsewhere is an indication of something terrible and stinky is about to unveil in Russia and those that quickly sensed it has taken a drastic step for an alternative but the poor will suffer this, only few ones will be able to make it out to another country and as the rate of emigration is high he may place embargo on leaving the country. I pray this man does not initiate the third world war.

[Obito]

Even if they seize the assets of this foreign individuals, how will they be able to run it as smoothly themselves? I am pretty sure that they're not going to be able to do the same operations as the previous owners and I think that those people who own those businesses have safety net in place when this war started.

[swogerino]

If they do that then they can say goodbye to any Western company from reopening there again for ages,may be never again.Western corporate businesses sure know business much better than any Russian company and once they see the way they are treated now it is only normal they will not ever again go and open a branch in Russia.

I have said in other threads that what Putin is doing is just making Russia a new North Korea from the level of isolation they will get from such moves.The Russian government doesn't seem to care now but they will soon as the effects of the sanctions are projected to be felt in the long term and who will suffer the most are the Russian civilians.They,the civilians are the only ones who can stop this war but it seems they are in a deep sleep now.

[stompix]

The moron thinks this is 1819 and nationalizing a shoe factory will simply work from day one like never happened, he could at least have watched what happened in Venezuela when they did the same shit.

Ok, nationalize AvtoVAZ and take over from Renault, you have a car factory! Glory to the might moron!
But in reality, you have a factory without half of the gear for those cars that even now come from Romania and Morocco, good luck trying to persuade the company to sell your those after you have taken over their business. Poeple really think that this substitution works wonders, it doesn't!

One should always look at what happened to Huawei when they were cut from the chips market, they can't launch a 5g phone, even their flagship is 4G, and this is in China where some poeple really believe everything is produced. No, it's made by foreign companies, take over and you won't have anything working anymore.

But what can you tell to the average Russian who thinks that the Sun revolves around Russia, that they are the mightiest, the most technologically advanced, bla bla, they will say of course it works, glory to the USSR and then 4 years later when they are down the drain dirt poor only making vodka from old rags and hay they,  will blame the evil capitalists for their own stupidity.

[Mometaskers]

Reading this reminded me of that video of Chavez casually pointing at a business and saying "Expropriate it" with the owner collapsing in tears as he get pulled away. What is Putin gonna do with all that empty McDonalds he took over? LOL.  This is so totally not gonna bite Russia back /s.

Now that the Russians bitcoin investors are going out of the country to seek for better settlement elsewhere is an indication of something terrible and stinky is about to unveil in Russia and those that quickly sensed it has taken a drastic step for an alternative but the poor will suffer this, only few ones will be able to make it out to another country and as the rate of emigration is high he may place embargo on leaving the country. I pray this man does not initiate the third world war.

This is going to be East Berlin all over again with walls and guards with their guns pointed IN rather than out.

[Beerwizzard]

In a current situation these actions look quite reasonable. Nothing unexpectable.
1. This was done in response for overall cancelling culture around Russia when companies are under pressure in order to leave the Russian market. And since everything was done rapidly, it is reasonable to set some limitations for capital movement.
2. Lots of russian companies have frozen assets in EU. This time even a large part if Russia's central bank reserves were arrested by EU.

In that situation the response from Russia is quite reasonable. Probably, many other presidents would do the same in such sutuation.

The moron thinks this is 1819 and nationalizing a shoe factory will simply work from day one like never happened, he could at least have watched what happened in Venezuela when they did the same shit.

So you think there is no difference between oil and burgers?

[stompix]

So you think there is no difference between oil and burgers?

Absolutely none!

The only thing that Russians forget is that even when it comes to oil they can't do shit without western equipment. The first Russian artic platform was 20 years decommissioned Conoco oil platform,  most of the drilling in northern Siberia was actually done by western companies, see the associations with BP and Shell, and what is not western is made in South Korea.

Let's look at the pride of Russia, the Kamaz with 8 times winner in a row truck:

Gearbox ZF (Germany)
Transfer case (Austria)
Shock Absorbers (Netherlands)
Drive axles (Finland)
Cardan transmission (Turkey)
Clutch (Germany)
Brake system (Belgium)

Let's look at something else, the pride of the new Russian air fleet, the Sukhoi Superjet 100:

Snecma, Thales , Messier-Bugatti-Dowty, Honeywell , Liebherr , Intertechnique, Parker Hannifin , B/E Aerospace

Yeah, you know what all these have in common with fries?
The ovens at McDonald's are produced in the US, the girls the same, and no, you can't cook hamburgers on Lada radiators, which btw are made by Renault.
 

[Beerwizzard]

The only thing that Russians forget is that even when it comes to oil they can't do shit without western equipment. The first Russian artic platform was 20 years decommissioned Conoco oil platform,  most of the drilling in northern Siberia was actually done by western companies, see the associations with BP and Shell, and what is not western is made in South Korea.

As I know, what concerns the oil and resource research is quite good. At least I've heard they got decent specialists. Also, I agree with your general statement that in globalized world you can't do shit alone (works for any country) but situation with Russia is a bit different. This time there is an external reason for that and since Russia becomes more isolated there is no fear of loosing foreign investors because they already lost them due to other reasons. This rule only applies during the times of free trade.

Yeah, you know what all these have in common with fries?
The ovens at McDonald's are produced in the US, the girls the same, and no, you can't cook hamburgers on Lada radiators, which btw are made by Renault.
 

Venezuela's problems obviously related to their national policy but the kay problem is that the country is run by a drug cartel and they had a specific overall type of management combined with socialistic ideas. Nationalization was one of the most remarkable events but it was not as harmful as their own management.


Also, this topic is kinda overvalued. Many companies did not quit Russia but just froze their operations (just like McDonald's did). It would come to nationalization only in emergency case before getting Russia fully locked, which probably wouldn't happen.

[paxmao]

The only thing that Russians forget is that even when it comes to oil they can't do shit without western equipment. The first Russian artic platform was 20 years decommissioned Conoco oil platform,  most of the drilling in northern Siberia was actually done by western companies, see the associations with BP and Shell, and what is not western is made in South Korea.

As I know, what concerns the oil and resource research is quite good. At least I've heard they got decent specialists. Also, I agree with your general statement that in globalized world you can't do shit alone (works for any country) but situation with Russia is a bit different. This time there is an external reason for that and since Russia becomes more isolated there is no fear of loosing foreign investors because they already lost them due to other reasons. This rule only applies during the times of free trade.

...

On the oil extraction business, it is certain that the extraction, processing and even transportation has become a very specialised business. Even large companies depend on a selected group of technologists and know-how companies. This is nothing like we nationalise and next day we just open as usual. And on the financial side, it is pretty much the same, it is not only the huge investments required, it is the ability to manage efficiently those fluxes of money without loosing them to corruption, inexperience and inflated supply-chains.

If the military invasion of Ukraine by Putin's army is an example of how things are managed in his government, I can already tell you there is plenty of GDP to be lost.

[so98nn]

That is straight up threat to the White Collar jobs and they not gonna like it. In fact I assume that they might have started the migration process from the Russia as we speak. They will do so because the future is not good in the Russia and the acts of them have put Russia on hundreds of sanctions. Its not about the business anymore when you are in the Russia, but its all about the sparing the life of themselves and praying to get into jail if they dont listen.

Its too bad, he openly challenged them. He is nuts, he is a "educated illiterate" I would say. The same companies are actually thriving the homes of his own peeps, the families are getting paid by working under those companies.

Until the air clears, they gonna keep it low, but once its done these businesses not gonna step into Russian Land.

[Lucius]

This is a very peculiar understanding of business and the rule of law. I wonder that, if this is effectively implemented, will we ever see a western company investing or doing business in Putin's dominions? Will the jobs for the Russian people created by this companies disappear for decades to come?

If we know that a man is ready to invade a sovereign country militarily, to destroy everything in his path without any mercy - then why would it be strange to want to nationalize the property that will remain behind the companies that cease to operate in that country? All these companies must take into account the risk of such events, in every business you can profit and you can lose.

All of these companies may one day return if the government in that country changes, and that new government will then do the right thing and return the property to its owners. While everyone is focusing on how many companies are leaving Russia or temporarily shutting down, the drug manufacturing sector is not covered by sanctions and continues to operate normally, despite some wondering how moral it is - but the fact that oil and gas are still flowing from Russia to the countries that impose the biggest sanctions is no less moral.

Of course, Russia will lose a lot of jobs with the closure of all these companies, but this is their internal problem that they have created for themselves - maybe these people will now be redirected to other sectors.

[AicecreaME]

Putin's latest crazy idea is to coerce Western and multinational firms into keeping their business open in his dominions. The message here is "you have to keep your doors open or I will take all your assets and property and also send your executives to jail".

https://foreignpolicy.com/2022/03/11/russia-mcdonalds-business-seizures/

McDonald’s—which made capitalist history when it opened its first Soviet restaurant in Moscow 32 years ago—is leaving Russia. So are BP, Shell, Ferrari, Ikea, Ford, Mercedes-Benz, Unilever, and a host of other Western companies

Medvedev proposed that Moscow should seize the assets of foreign individuals and companies in Russia. And on March 9, Russia’s governing party said a government commission had begun the process of doing so.

This is a very peculiar understanding of business and the rule of law. I wonder that, if this is effectively implemented, will we ever see a western company investing or doing business in Putin's dominions? Will the jobs for the Russian people created by this companies disappear for decades to come?

This is just so low for a president. To utter such words and to even make it into actions is just pure absurd. This just shows how incompetent he is in terms of leading and when it comes to the economy such as business matters. If he will continue to act like this, most probably the western countries will be turn off with his attitude. Exhibiting such behavior is just manipulative. The moment the western investors come into their senses, probably they will just pull out instead of staying.

This will do no good to Russia's economy. Instead of betterment, they will have nothing in their side once investors lose interest on them. I just hope it won't really go that far because Russian citizens are also affected by their president's acts of incompetency and aggresiveness.

[fiulpro]

The guy is under extreme pressure, he knows he is done and therefore he is trying to make sure that the country is able to secure funds and according to the sources he have already asked China for supplying military aid or necessary financial aid which does mean that he is loosing the war and he knows that, therefore the latest threats are going to the companies who have their institutions set up in Russia already, even if the government seizes them still the companies won't be able to function because of the visa, Mastercard, international payments not being made which means they don't even have any basis to stay in Russia, if they are not leaving to protect ukraine they might as well be leaving because of the sanctions. He needs to know that without sanctions being lifted and him stopping this madness nothing he say is going to work, no threats, no nothing.

[DaveF]

Makes you wonder how much of the companies leaving has nothing to do with wanting to but they are being forced to.
It's tough to sell burgers in McDonalds if you can get meat in from the outside world.
I can sell donuts & coffee at Dunkin Donuts if the beans & dough can't make past the border.
And if they do, there is no way to get my money back out.

So a business might want to stay open, but there is no way for them to.

As for large amounts of their 'home grown' products being sourced from all over the world, as others have said that is just about everything everywhere.

Which was way so many people were laughing at the Trump people cheering when they were "going to bring manufacturing back to the USA" No, you are going to try to bring assembling things to the USA.

-Dave

[merchantofzeny]

I think it's counterproductive depending on what company's assets they seize. Let's take McDonalds for example. Say the company decide to leave and then Putin seizes the assets, what is he gonna do with it? Would he be able to just make the stores run like nothing happened, is gonna retain the employees, etc? I think even if he decides to just shut them down and liquidate, who he gonna sell those too? Even if he sell those to his cronies, the money would still be coming from within Russia, no new money comes in.

[naira]

Closing each other, accusing each other, forcing each other between foreign companies, elbowing each other between Russia, the EU, and even the US. That is the fact that we are now witnessing. No one wants to give in, no one wants to submit. All for the sake of showing who is in charge of the world's economic industry. Russia, Saudi Arabia, and North Korea collaborated to shut down the oil business, which made prices in the US soar by more than 50%. Foreign companies operating in Russia began to close and resign. So and will continue to do so during the process of the selfishness of each one who does not want to budge. Who is to blame? who wants to be blamed? all want to win. Is not it?

Watching the news all day is filled with very saturated news.

[NeuroticFish]

Let's take McDonalds for example. Say the company decide to leave and then Putin seizes the assets, what is he gonna do with it?

I think that it's not the best example.
MacDonald's works as a franchise business. So the owners of the actual restaurants (hence the assets) are (probably) Russians.
They were paying for the rights and recipes and parts and MacDonald's was actually having all the contracts right so the suppliers keep sending what's needed where's needed.


However, there's nothing for Putin to seize in MacDonald's. Maybe from other businesses. But going on this track he ensures Russia will become a big no for... basically every goods and services that matter (but I'm no longer surprised; I'm curious how long will it take until most Russians get to understand what happens there).

[Hydrogen]

This is a very peculiar understanding of business and the rule of law. I wonder that, if this is effectively implemented, will we ever see a western company investing or doing business in Putin's dominions? Will the jobs for the Russian people created by this companies disappear for decades to come?

Many regimes make the errors venezuela did after nationalizing the private sector operations of kelloggs, toyota and other businesses. Leaders there confiscated all assets and sold them off to fatten their own pockets. It resulted in a negative trend where jobs were lost and never returned. The economy was weakened by significantly reduced local production of goods, which converged with currency devaluation to drive costs upwards as the bolivar hyperinflated.

Putin will not follow the precedent of venezuela. His goal will be to reopen businesses seized to keep job markets and local economic production intact. Whether he can achieve this feat, will come down to whether he can negotiate with or replace suppliers. He can seize and re-open McDonald's with generic ingredients and dishes that are not from official sources. This is easier to do today than ever. DNA identification in the food industry allows identification of secret ingredients and (perhaps) secret recipes. Every food item prepared by restaurants like McDonald's could be identified by DNA testing and perhaps reverse engineered.

There definitely is a blueprint for Putin's approach potentially being successful. Whether or not he can succeed at this venture, which has not been tried before is anyone's guess.

[stompix]

~

As I know, what concerns the oil and resource research is quite good. At least I've heard they got decent specialists. Also, I agree with your general statement that in globalized world you can't do shit alone (works for any country) but situation with Russia is a bit different. This time there is an external reason for that and since Russia becomes more isolated there is no fear of loosing foreign investors because they already lost them due to other reasons. This rule only applies during the times of free trade.

Do you work in the oil industry? Do you design mining rigs, pumps, drills? Do you work on an oil field?
Or...you watch Russia today?
The same specialist that we're telling us Russia has the second most powerful army in the world that would be in one week parading in Paris?

No, the situation is not different at all, and you could look at the damn history books and see what shit the USSR ended up producing that wasn't good even for African countries anymore and the same time, for everything that comes to exploring oil deposits, once the Russian available technology peaked in the 70's they started trying to copy everything western to no avail, production peaked and only abundant new fields resources kept it somehow going. That's not the case anymore. Either way, I find it hilarious when politicians who have never worked once in a company that doesn't get magic money from the government suddenly have plans to run a profitable consumer-orientated one or how the guy flipping burgers at McDonald's suddenly is an expert in logistic just because he worked there for a few months.

I think it's counterproductive depending on what company's assets they seize. Let's take McDonalds for example. Say the company decide to leave and then Putin seizes the assets, what is he gonna do with it?

Rename it McNothing! That name would come in handy and accurate for promos 2-3 months later.